SEACON(02409) has entered into a financing lease arrangement for a bulk carrier under construction.

SEACON (02409) announced that on February 26, 2025, the lessee and seller (both indirect wholly-owned subsidiaries of the Company), the owner, the Company, and the guarantor entered into a financing lease arrangement. The seller agreed to sell the vessel to the owner (a 40,000 dwt bulk carrier under construction) for a consideration of $34 million. According to the bareboat charter, the owner agreed to lease the vessel to the lessee. The Company entered into the first guarantee as a beneficiary for the owner, and the guarantor entered into the second guarantee for the lessee and seller as beneficiaries. The Group has historically used financing lease arrangements to fund the acquisition of controlled vessels. The financing lease arrangement enables the Group to obtain financing for the acquisition of the vessel, in line with the Group's strategy to gradually phase out older controlled vessels and replace them with newer vessels to optimize its fleet and expand its controlled fleet. The directors believe that through fleet optimization, the Group can enhance its competitiveness in the shipping industry and meet the market demand for its shipping services. In addition, under the second guarantee signed by the guarantor, the guarantor agreed to guarantee the owner's performance under the financing lease arrangement. The guarantor was established in Japan in 1967 and is a local shipping company primarily engaged in vessel ownership and daily vessel operations. The Company believes that the owner and guarantor have the financial strength and capability to fulfill their respective obligations under the financing lease arrangement and the second guarantee.